City of Morgan Hill Water System Master Plan 2017

inspection, and legal costs. The project related costs in this master plan were estimated by applying an additional 30 percent to the estimated construction costs.

8.3 CAPITAL IMPROVEMENT PROGRAM

This section documents the capital improvement program, contingencies included in the costs, and the allocation of costs to meet the requirements of AB1600.

8.3.1

Capital Improvement Costs

The Capital Improvement Program costs for the projects identified in this master plan for mitigating existing system deficiencies and for serving anticipated future growth throughout the City are summarized on Table 8.2 . Each improvement was assigned a unique coded identifier associated with the improvement type and is summarized graphically on Figure 8.1 . The estimated construction costs include the baseline costs plus 30 percent contingency allowance to account for unforeseen events and unknown field conditions, as described in a previous section. Capital improvement costs include the estimated construction costs plus 30 percent project-related costs (engineering design, project administration, construction management and inspection, and legal costs). Cost allocation analysis is needed to identify improvement funding sources, and to establish a nexus between development impact fees and improvements needed to service growth. In compliance with the provisions of Assembly Bill AB 1600, the analysis differentiates between the project needs of servicing existing users and for those required to service anticipated future developments. The cost responsibility is based on model parameters for existing and future land use, and may change depending on the nature of development. Table 8.2 lists each improvement, and separates the cost by responsibility between existing and future users. 8.3.2 Recommended Cost Allocation Analysis

8.4 SUGGESTED EXPENDITURE BUDGET

This section discusses the suggested expenditure budget for the capital improvement plan horizon as well as the recommended sequence of construction for capital improvement planning.

8.4.1

5-Year Capital Improvement Costs and Phasing

The capital improvement program costs and phasing for the next five fiscal years (FY) are summarized on Table 8.3 ; this plan includes the total costs for pipelines, tanks, booster stations, and valves to be constructed. The improvements listed are also categorized by improvement classification, indicating whether the improvement is intended to expand or replace the existing water distribution system infrastructure.

June 2017

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City of Morgan Hill Water System Master Plan